Vinicius Jr and Rodrygo compatriot has committed to stay at Bernabeu until 2028 with €1bn (£860m) release clause.
Éder Militao becomes the fourth Madrid player this summer to renew his contract after Modric, Vinicius Jr and Rodrygo.
The center-back who joined Los Blancos in 2019 winter from Porto has a termination clause of 1,000 million euros.
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Éder Militao first season was more of shadows than certainties but later formed an effective partnership with David Alaba following Sergio Ramos and Raphael Varane’s departures.
The former FC Porto man scored twice and registered three assists in 50 appearances in all competitions last season.
Éder Militao was a pillar for the European Champions, making 12 Champions League start for Ancelotti’s side.
The Brazilian defender was due to become a free agent in 2025 but now join one of several Blancos mainstays to extend their deals with the club this summer.
However, Los Blancos are also planning for continuity of Andriy Lunin, Karim Benzema , Thibaut Courtois and Federico Valverde ahead of the 2022-23 season.
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